Therefore, teak is a good investment

Profitability

Teak wood has for decades experienced increases that are above general inflation. This is largely related to the fact that teak wood is historical, is a very prestigious wood species, and is recognized for its good properties and many uses. Combined with the clearing of the tropical natural forest on a global level, and larger areas laid out for national parks, the supply of tropical hardwood from the natural forest will be smaller in the future. Here, the tree species Teak (Tectona grandis), unlike many of the other most sought-after tropical tree species, such as Mahogany (Swietenia macrophylla), has the absolute advantage that it is suitable for cultivation in plantation operations.

With the above positive expectations for the future market situation, and with a professional operation, Tectona Production sees it as being very attractive to invest in teak plantation operations.

Protection of rainforest and environment

Annually, about 10 million ha of forest are cleared, and despite the fact that North America and Europe have an influx of forest, there is a worldwide net decline of up to seven million hectares annually. Tectona Production does not clear existing forest areas and does not cut down the natural forest to make room for teak tree plantations, but instead uses areas that have been laid out with grass for grazing with cattle. On the contrary, Tectonas Production’s investment concept helps to ease the pressure on the natural forest and thus contributes to a better.